You must have heard about income
tax, sales tax and corporate tax as these are the types of taxes that are most
talked about. However, there are a number of taxes that you pay. You pay tax on
your personal and private belongings, and even your house and office buildings
are taxable. The two types of pay that you pay through your rent (only renters)
and sales tax are real estate taxes and personal property taxes. Both these
types of taxes are assessed on properties, but there is a lot of difference
between both of them. Read through to learn the difference between real estate
taxes and personal property taxes.
Real Estate Taxes
Real estate taxes are calculated on “real estate” or “real property”. To know more about what is a real estate taxes are, let’s read below.
Real estate or property in NCR refers to
land and anything which is attached to the land. It includes buildings and
structures constructed after landscaping. The term real state only accounts for
the constructed buildings like residential and industrial property and does not
include the furniture and upholstery inside the house/building. However,
built-in fixtures such as cupboards or bookshelves permanently fixed to the
walls and built-in appliances such as chimney or dishwasher are counted among
real estate property on Noida expressway.
As mentioned above, real estate
taxes are assessed on real property and are based on the market value of that
particular property. The amount of tax on a property and its market value are
directly related to each other as higher the value of a property, higher will
be the real estate taxes charged on it and vice versa.
The real property taxes are payable
by the property’s owners even if they have rented it out. Only state can exempt
a person from these taxes due to age or any form of disability. If the owners
lease the exempted property to someone, that person (leaseholder) is liable to
pay taxes. The owners of industrial property, residential properties and
agricultural properties pay it directly to the state, whereas tenants pay it
through the rent amount. These taxes are assessed in January each year, and
during the same month, a notice is mailed to the payers.
Personal Property Taxes
These taxes are imposed on subjects
of private ownerships that are not attached to the land and are movable.
Personal property is also referred to “Chattel”. Livestock, cars, jewellery, artifacts, electronic devices and appliances, business equipment and furniture
are considered to be subjects of personal property although can be sold with
real property on Dwarka expressway.
The personal taxes are calculated
by state and local government. Sales tax, which we pay at the time of making
any purchase, is the most common type of personal property in Gurgaon. The registration
fees that we pay annually are also a form personal property taxes. Services
that we avail are exempted from such taxes. The amount to be paid as personal
property tax is calculated on the basis of the present market value of the
object being taxed.
